The question about where to put spare company cash comes up all the time, and always with the same answers, 1% here, 1.2% there. Boring! 
This is what I did - and yes after checking with my accountant at SJD who said lots of clients do it.
I opened a 'corporate' Vantage Fund & Share account with Hargreaves Lansdown. Before I go on - this is not a plug - I'm not wishing for a free HL rucksack, just sharing my experience.
So, 'corporate' is the key point here. This means the account is solely in my Ltd co name. This is on the paperwork, the website when I login and even my userid is the company name. This classes it as a company asset, separate from my private assets, even though of course it's me logging on making the investments. And crucially ONLY return funds back to the company bank account. Funds must never stray out to your personal account. Obvious.
So ... now we have a nice convenient place to shift some of that dead cash we all suffer so badly with!
As you've probably read in the papers before - all you have to do now is hire a chimp and ask him to place a dart in the FT and then buy those shares with your company funds. Haha.
Honestly - it's not that hard. Basic account management and average risk taking has seen my company buy eg VOD shares, LSE shares etc etc and receive dividends sometimes too.
When you make 5% on some shares in a fortnight with company money - you can't help chuckling at those searching for the best 'savings account'. Good luck with that.
Just before my co year end I transfer all funds back to the company main account. My accountant includes profit with other income and the correct taxes are paid. Simple.
It's a beautiful feeling each time your company makes a profit equivalent to your day rate without you being on site.
Yes you can lose. But be sensible. Spread risk.
Oh and people always say - oh no! your company will be deemed an investment company! Er - not likely. As long as you're making, I don't know, 50k, 80k, 100k whatever from normal contracting, your 2,3,4,5,10(if you're lucky/good at it) thousand profit is never going to eclipse that to justify anyone saying its your company's main income. I'd be happy with a couple of thousand profit a year, hey it pays the accountant bill
So in summary - more directors need to know investing is a viable, easy to setup thing to do with company funds.
Still looking for that 1% a year savings account...?
This is what I did - and yes after checking with my accountant at SJD who said lots of clients do it.
I opened a 'corporate' Vantage Fund & Share account with Hargreaves Lansdown. Before I go on - this is not a plug - I'm not wishing for a free HL rucksack, just sharing my experience.
So, 'corporate' is the key point here. This means the account is solely in my Ltd co name. This is on the paperwork, the website when I login and even my userid is the company name. This classes it as a company asset, separate from my private assets, even though of course it's me logging on making the investments. And crucially ONLY return funds back to the company bank account. Funds must never stray out to your personal account. Obvious.
So ... now we have a nice convenient place to shift some of that dead cash we all suffer so badly with!
As you've probably read in the papers before - all you have to do now is hire a chimp and ask him to place a dart in the FT and then buy those shares with your company funds. Haha.
Honestly - it's not that hard. Basic account management and average risk taking has seen my company buy eg VOD shares, LSE shares etc etc and receive dividends sometimes too.
When you make 5% on some shares in a fortnight with company money - you can't help chuckling at those searching for the best 'savings account'. Good luck with that.
Just before my co year end I transfer all funds back to the company main account. My accountant includes profit with other income and the correct taxes are paid. Simple.
It's a beautiful feeling each time your company makes a profit equivalent to your day rate without you being on site.
Yes you can lose. But be sensible. Spread risk.
Oh and people always say - oh no! your company will be deemed an investment company! Er - not likely. As long as you're making, I don't know, 50k, 80k, 100k whatever from normal contracting, your 2,3,4,5,10(if you're lucky/good at it) thousand profit is never going to eclipse that to justify anyone saying its your company's main income. I'd be happy with a couple of thousand profit a year, hey it pays the accountant bill
So in summary - more directors need to know investing is a viable, easy to setup thing to do with company funds.
Still looking for that 1% a year savings account...?
Comment